Trabaho (Tagapagtaguyod ng mga Reporma at Adhikaing Babalikat At Hahango sa mga Oportunidad para sa mga Pilipino) party-list on Thursday once again urged the House of Representatives for the passage of the Wage Tax Adjustment for Growth and Equity (WAGE) bill shortly after the P85 minimum wage hike for National Capital Region workers.
While Trabaho party-list Rep. Johanne Bautista welcomed the wage hike, she said that it should just be the beginning of labor reforms. She emphasized that the passage of the bill will allow workers to save more of what they earn while helping create better job opportunities.
By protecting workers’ incomes while supporting the businesses that generate jobs, we can build an economy where growth is shared, and every Filipino worker has the opportunity to achieve lasting financial security,’ Bautista said in a press release.
The WAGE bill or House Bill No. 4431 was filed by Bautista, which aims to increase tax-free income from P250,000 to P400,000. It also seeks to exempt additional compensation required by law from income tax (such as holiday pay, overtime pay, night differential pay).
Further, Bautista said that the wage hikes ‘provides much-needed relief for Filipino families struggling with the rising cost of basic goods’; however, she also said that the wage increase is not enough to promote financial security for workers.
The WAGE hike will be implemented in two tranches: P60 effective on July 25, 2026 and an additional P25 effective on January 2027.
This will effectively raise the daily minimum wage of non-agriculture sectors from P695 to P755 for the first tranche and P780 for the second tranche.
Meanwhile, the sectors of agriculture, service, and retail (employing less than 15 workers), and manufacturing establishments will see a rise from P658 to P718 for the first tranche and P743 for the second tranche.
During the country’s 124th Labor Day observance, Bautista called for wage tax reform and decent work for all Filipinos amid rising cost of living